Castlerock’s “beyond-CBD” office investment strategy delivers

Specialist direct property and social infrastructure fund manager, Castlerock, has managed to navigate the ‘negative sentiment’ surrounding office investment to deliver on its “beyond-CBD” approach for investors.

The manager said their expertise in securing opportunities off the beaten track has been all but confirmed by its Government Property Fund raising $35 million in capital for “the acquisition and development of new assets aimed at sustaining growth and diversification”.

Adam Bronts, Director of Business Development at Castlerock, said the manager’s focus on locking in prime locations outside Australia’s CBDs and partnerships with government tenants has delivered a stable income stream for investors that has withstood market volatility.

“The recent $35 million capital raise reflects strong investor confidence in our strategic approach and the opportunities we continue to identify and capitalise on. These funds enable us to pursue acquisitions or developments of premium quality in trusted locations beyond the CBD,” he said.

The announcement comes as the fund also received a ‘Favourable’ rating from investment research and ratings house, SQM Research. In its report, SQM credited the fund’s “robust approach applied to its research and portfolio construction, the stringent screening process for
all State and Federal tenders, and the meticulous due diligence”.

“As a result of Castlerock’s long-term stable investment philosophy, we have awarded the ‘favourable’ rating to highlight the rock-solid nature of the Fund, particularly in the current investment climate. There is also potential for the Fund to outperform over the medium-to-long term.”

The fund, scheduled to re-open to investors in August 2024, offers a diversified portfolio of 13 state and Commonwealth government-leased assets across Victoria, Queensland, Western Australia, Tasmania and New South Wales, with funds under management (FUM) now at $526 million.